What will it take for India to replicate the ISRO model in AI?

These were some points that left the audience pondering at MLDS 2025. Speaker Paras Chopra, founder of Lossfunk, captivated the developers with the idea that the Indi…

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Given the buzz generated by the IndiaAI mission last week, with the Centre calling for proposals to build India’s own foundational model, finance minister Nirmala Sitharaman allocated ₹2,000 crore for the IndiaAI mission – nearly a fifth of the scheme’s ₹10,370 crore announced last year. This funding comes amid the government’s selection of 10 companies to supply nearly 19,000 GPUs for setting up AI data centres and building foundational models.

Before we dive into the Budget, let’s look at some of the top stories of the week.

Is OCR becoming obsolete? With AI models now capable of extracting text from images with high accuracy, the role of traditional OCR is under scrutiny. While startups are shifting towards AI-driven text recognition, OCR remains crucial for digitising Indic languages. But for how long? Read more here.

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With ‘Collaboration in an Intelligent Age’ as the theme, AI dominated conversations on the promenade, while India showcased a bold new approach and unified its presence under one roof.

Not just leading the AI revolution, India is building what comes next!

At Davos 2025, India’s AI ambitions commanded attention as leaders emphasised the country’s push to become a global AI powerhouse. From workforce skilling to economic policy, AI is being positioned as a core driver of India’s next phase of growth.

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This has become a pattern. While TCS, Infosys, Wipro, HCLTech, LTIMindtree, and Tech Mahindra are all pushing AI harder than ever, they continue to remain tightlipped about how much it’s actually making them.

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“At launch, I was hoping to say we had thousands of beta users,” shared Shah. “Turns out I was right—we had 47,000 beta users when we launched.” Today, Agent.ai has over 3,400 custom-built agents solving real-world problems.

The Week of AI Agents

At the Microsoft AI Tour in Bengaluru recently, Satya Nadella unveiled Copilot Studio, calling it a no-code solution that makes building agents “as simple as creating a spreadsheet.”

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“Bengaluru gets more criticism than it deserves. Traffic here isn’t as bad as people think, and we’re working hard to make things better,” he said with a reassuring smile.

Bengaluru, often called the tech capital of India, is leading the way in using AI to solve traffic problems. From smarter signals to faster violation detection, the city is setting an example for others to follow.

While big techs like Google and Cisco offer traffic management solutions, Bengaluru’s approach prioritises tailor-made solutions from Indian startups.

“Big tech solutions often rely on centralised systems and aren’t customisable to the unique conditions of our city,” said Anucheth.

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Let’s dive in.

Sriram Krishnan’s appointment as senior policy advisor for AI at the White House sparked debates about immigration and innovation, and Nobel laureates like John Hopfield, Geoffrey Hinton, Demis Hassabis, and John Jumper showcased AI’s transformative impact. The year has been nothing short of revolutionary. AlphaFold, the youngest innovation to win a Nobel, has reshaped protein research. At the same time, reasoning models like OpenAI’s o3 and Meta’s FAIR self-taught Evaluator, alongside Gemini 2.0 Flash Thinking, have taken AI closer to independent “thinking”.

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In contrast, OpenAI’s revenue stands at

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The stakes are high. According to AIM Research, nearly 49% of GCCs in India are US-headquartered, drawn by the country’s unbeatable combination of tech talent and relatively low costs. It’s not just interest; it’s action. Between 2022 and mid-2024, global firms leased 53 million sqft for GCCs, with many already planning expansions, Cushman & Wakefield reveals.

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Despite deploying hundreds of AI solutions in 2024, the revenue growth has been below expectations. “Indian IT is shifting from generic AI models to tailored solutions for clients,” said Mohandas Pai, former CFO of Infosys, in an exclusive interview with AIM. The question now is whether companies like TCS, Infosys, Wipro, HCLTech, and LTIMindtree can scale these efforts into transformative, profitable ventures in the year ahead.

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It struck me—when did "ChatGPT" become a verb in our everyday language? I was witnessing a linguistic shift unfolding right before my eyes, much like when "Google" transformed from a company name into a universal synonym for searching the internet.

Back in the early 2000s, we'd say, "I searched for information online." A decade later, it became, "I googled it." And now, in 2024, we're saying, "I ChatGPT'ed it." This isn't just a change in vocabulary; it's a reflection of how deeply artificial intelligence has woven itself into the fabric of our daily lives.

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Look at DeepSeek’s R1-Lite Preview, for instance. Hailed as a reasoning model rivalling OpenAI’s o1, it has achieved real-time chain-of-thought transparency. 

And here’s the kicker: Within just two months of o1’s release, Chinese researchers not only caught up but surpassed it, dominating benchmarks like AIME and MATH. DeepSeek’s rise as a leader in reasoning isn’t just impressive—it’s a wake-up call you can’t afford to ignore.

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Trump has consistently championed limited government intervention in technology, positioning AI as a strategic asset for America’s competitiveness. His promise to revoke Biden’s 2023 Executive Order on AI—which prioritised safety and ethical AI use—has sparked a debate across the tech spectrum.

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Cupertino tech giant Apple announced that it is looking to set up its first R&D subsidiary in India, marking a significant investment aimed at bolstering its innovation capacity in a market projected to contribute over $100 billion to the tech industry by 2025.

Global cloud-based observability platform New Relic is tapping into India’s rapid growth as a key market by expanding its Bengaluru office to a 300+ seating space. It aims to enhance innovation and cross-functional collaboration, with plans to leverage India's tech talent and advance AI adoption to drive its Intelligent Observability Platform to serve a global customer base in the coming years.

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Microsoft and Amazon have emerged as leaders, demonstrating significant growth and advancements in AI initiatives. The former reported a 16% increase in revenue, reaching $65.6 billion, with a notable emphasis on AI integration across its product suite. “Copilot is the UI for AI. Nearly 70% of the Fortune 500 now use Microsoft 365 Copilot,” CEO Satya Nadella highlighted. 

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Here are the key highlights:

AI Leaders Visit India: India welcomed leading AI figures, such as Meta’s Yann LeCun and NVIDIA’s Jensen Huang, signalling the country’s growing influence on the global AI stage.

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Good News: Indian IT is aggressively integrating generative AI into its services, with TCS reporting over 600 GenAI engagements, a significant increase from close to 270 last quarter. “Last quarter, we had eight engagements that went into production. And this quarter, we have almost 86 engagements going into production,” shared TCS chief K Krithivasan, saying it's a sign of maturity. 

Meanwhile, Infosys is deploying small language models, and multi-agent solutions, embedding GenAI into nearly every client engagement. “Generative AI is now a part of everything we do—any large program, transformation, or cost-efficiency initiative—it is becoming crucial to almost every deal,” said Salil Parekh, CEO and MD at Infosys, when asked about generative AI revenue. 

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Well, it does look like the “biggest product of all time – of any kind”, something that Elon Musk claimed while launching Optimus to the public at the ‘We, Robot’ event at Warner Bros Studios in Burbank, California. “Whatever you can think of, it will do,” Musk beamed.

In the release video, Optimus serves drinks, makes conversations, pulls grocery bags out of cars and water plants, and plays games with the family. But that’s not all that Musk had plans for.

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However, some argue that since these coding tools are so cheap, they might end up making coders even cheaper. 

Really? 

In the US, software developers earn between $40,000 and $150,000 annually, depending on experience and specialisation, with an average salary of around $89,190 per year.

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The three-day AI conference held last week at the Hil…

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